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IMF Head goes over impending economic recession

The IMF or International Monetary Fund is one of the world’s leading financial institutions and is responsible for delivering monetary assistance to countries around the world. The recent surge of the COVID-19 crisis has brought with it tons of uncertainty. In a recent interview, the acting head of the IMF spoke on these problems to give her views on the matter.

The Present State of the Economic System

Almost every category of economic indicators has been reflecting a horrifying fact with many of the numbers being seen for the first time since the original Great Depression. It is hard to anticipate what these numbers will look like come the end of the year because right now there have so many things up in the air. One thing is certain you cannot deny that the numbers for several key indicators are troublesome.

Unemployment Position

Unemployment levels across the globe have skyrocketed in the last month with more than 20 million freshly unemployed in the United States alone. Many countries around the world either already are or will soon be going through unemployment levels not seen since the 1930s.

Existing GDP Forecasts

At the start of this year, many organizations estimate for the year included healthy if modest GDP growth around the world. Of course, the models had some countries performing better than others but overall widespread good fortune. Today the story is a great deal different. Nearly across the board countries are forecasting negative GDP growth.

How are Industries Affected

There are some industries such as the airline industry that are experiencing as much as 90% or more decline in their revenues year over year. Some industries are being impacted more than others but the devastation is pretty much-affecting everyone in some way.

Outcomes of Approach to Crisis

Right now the leader of the IMF has said they are pursuing a careful approach. It is wise not to disregard the health crisis that is still going around the planet. Their interventions are designed to prevent as much pain as possible and they are paying careful attention so as to not overlook the countries that need help the most . Especially those that are scrambling in the developing world.

More information can be found on the IMF website.

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